FINANCE|free movement of capital|financial market
- céadrogha a dhíol Reference Faomhadh an téarma seo mar chuid de Thionscadal Lex
- ga
- write a put | option | sell a put
- en
- Definition write a put contract, and by selling the contract to the put buyer, sell the right to sell shares at a specific price Reference "Investopedia > Introduction To Put Writing, http://www.investopedia.com/articles/optioninvestor/02/030102.asp#axzz23WkT7uTg [15.8.2012]"
- Comment Selling a put is advantageous to an investor because he or she will receive the premium in exchange for committing to buy shares at the strike price. If the price of the stock falls below the strike price, the put seller will have to purchase shares from the put buyer when the option is exercised. Therefore, a put seller usually has a neutral/positive outlook on the stock or expects a decrease in volatility that he or she can use to create a profitable position.